Startups scramble to become China’s pedal-powered Uber
Fierce competition expected for market share as many app providers seek to attract investors for funding as well as customers looking to pedal that last kilometre
Following growth in the car-hailing market, bike-sharing apps are becoming next big thing in China’s sharing economy as growing startups backed by venture capitalists and technology giants have flocked into the battle to be Didi or Uber for bikes.
Fierce competition is expected for market share next year, with bike-sharing business entrants also facing potential obstacles from polluted air and security issues, industry insiders and analysts say.
Shanghai-based bicycle rental platform YouBai, established in July, last week said it had raised 100 million yuan (HK$111 million) in its third-round financing from several domestic investors led by Black Hole Capital, according to the 21st Century Business Herald. In September, the company raised 150 million yuan in A round financing and 10 million yuan in its angel round from several domestic investors and local state-owned enterprises.
Bluegogo, another bike-sharing application backed by bike manufacturer SpeedX, also said last week that it would close financing of several dozens of millions US dollars by the end of this month, the Herald report said. Late last month SpeedX had completed the 150-million-yuan round of funding, and part of the money would be invested on Bluegogo.
In September, three other Chinese startups - Mobike, oFo and XiaoMing Danche, also raised funding of between 10 million yuan and US$100 million.